The Move America Act, bipartisan legislation has been introduced in the House and Senate introduced (H.R. 3912 and S. 1229) to enhance America’s infrastructure by strengthening public-private partnerships. ASCE supports the legislation and has been working to advance it in both the House and Senate. The House bill was introduced this October by Congresswoman Jackie Walorski (R-IN), Congressman Earl Blumenauer (D-OR), Congressman Brian Fitzpatrick (R-PA), and Congressman Sean Patrick Maloney (D-NY). The Senate bill was reintroduced this May by Senator John Hoeven (R-ND) and Senator Ron Wyden (D-OR).
ASCE’s 2017 Infrastructure Report Card, which graded our nation’s cumulative infrastructure a “D+.” The Report Card also found that to close our nation’s $2 trillion 10-year investment gap, meet future needs, and restore our global competitive advantage, we must increase investment from all levels of government and the private sector from 2.5 percent to 3.5 percent of the U.S. Gross Domestic Product (GDP) by 2025.
By expanding private activity bonds and infrastructure tax credits, the Move America Act would generate billions of dollars in much needed funds and provide state/local governments the required flexibility to finance needed infrastructure projects.
The Move America Act would expand tax-exempt private activity bonds, develop an infrastructure tax credit and, through private-public partnerships, support infrastructure project funding. Project costs would be lowered and provide state/local governments the required flexibility to finance needed infrastructure projects.
Private capital is attracted through Move America Bonds and Tax Credits. States along with private entities issue tax-exempt Move America Bonds that are allocated based on state population size. These bonds provide states with flexible ownership and management arrangements, five-year carry-over for unused bonds, and favorable tax treatment including an exemption from the Alternative Minimum Tax.
Move America Tax Credits provide smaller states the ability to trade in some or all of their bond allocation for federal tax credits at a 25 percent rate. Credits can be used towards direct project investment or capitalizing state infrastructure banks.
Airports; rural broadband; mass transit; railroads; water furnishing facilities; sewage; docks and wharves; flood diversions; inland waterways; and certain transportation infrastructure such as roads and bridges would qualify to receive funding.
According to the Joint Committee on Taxation, the tools provided by the Move America Act would leverage $8 billion in federal investment into $226 billion worth of bond authority over the next decade or up to $56 billion in tax credits over 10 years.
We support this legislation and strongly urge Congress to act and find ways to invest in our infrastructure. We will be following this legislation closely, and keep you apprised of the latest developments.